-Requires mortgage brokers to act in borrowers best interest and disclose all facts that might affect borrowers rights, interests, or ability to receive intended benefit from the home loan (Sec. 1).
-Prohibits providers of subprime loans and nontraditional home loans from setting payments that are more than three times as large as the average of previous payments, modifying or deferring fees, or convincing borrowers to take out a second loan that is not beneficial to them (Sec. 4).
-Prohibits lenders from avoiding provisions of this bill by splitting the loan transaction into separate parts, with the exception of lenders who fail to comply because of an error (Sec. 6).